Summary
Summary Consumer studies - The consumer
- Course
- Consumer Studies
- Institution
- 12th Grade
Summary of consumer chapter
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THE CONSUMER1.1 Investigate and evaluate channels for consumer complaints in the food, textile and housing industry
Investigate the range of watchdog organisations in the food, textile, clothing and housing industry.
Evaluate case studies and/or real industry such as claims for misleading food, textile and housing
advertisements.
Evaluate labels relating to food and textiles.
Explain and apply the correct procedure to effectively make a complaint.
Explain and apply the National Consumer Protection Act and Food Labelling Act.
Channels for consumer complaints
Thousands of people face consumer problems every day. These are due either to bad service or poor quality
products. As a result, consumers lose millions of rands every year.
Consumers have the right to be heard (or complain); we should use this as an instrument to protect ourselves.
Consumers have the right to redress. This means that if any product is not to your satisfaction, you should
receive compensation - the product can be fixed, replaced or you can get a refund.
Consumers, dealers, sellers and manufacturers benefit from responsible consumer behaviour. In order to
improve products and services, the seller and manufacturer must receive feedback from their customers.
When consumers are dissatisfied with a product or service, they have the right, duty and responsibility to
express their dissatisfaction to the dealer or the manufacturer, so that the issue can be resolved satisfactorily.
Consumers should, in the first place, try to avoid complaints by making informed choices.
How to avoid complaints by buying wisely:
Find out as much as possible about a product or service before you make your decision. Misunderstandings
could lead to complaints.
Do not make a hasty decision; think about your purchase carefully. Compare prices and quality at various
stores.
Read guarantees carefully before you buy.
Buy the best quality you can afford. Give preference to goods bearing the symbol of the South African
Bureau of Standards (SABS).
Do not sign a contract unless you have read the small print carefully and ensured that you understand it.
Do not send mail-order money to an unknown person or company check whether there is a contactable
street address.
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,CHANNELS FOR CONSUMER COMPLAINTS AVAILABLE IN SOUTH AFRICA
Dealers and Manufacturers
The first port of call is the dealer or manufacturer. If a consumer believes that he has genuine cause for
complaint, it is important to go straight back to the place of purchase (dealer) as soon as the fault is discovered.
Most dealers (shops and businesses) have a consumer service section and are very reasonable if a consumer
wants to return goods. A consumer should have no problem exchanging a product, especially if he has proof of
purchase in the form of a sales slip or receipt and the goods are still in their original condition. Some products,
such as electrical appliances or clothing, may only reveal problems once they have been used or worn. If the
consumer adhered to the use and care instructions, the dealer should exchange the goods. If a consumer is
paying for a service and it is not delivered to his satisfaction, he is entitled to redress.
The manufacturer of the goods can be contacted if the dealer can't resolve the complaint satisfactorily. Many
products come with a warranty or a guarantee, which is always connected to a specific time period and
conditions. Should a product become faulty, the manufacturer should repair it free of charge.
A consumer has no right to complain if he simply changes his mind about a purchase.
Consumer Organisations
Consumer organisations are institutions or advocacy groups that represent consumers' interests and protect
people from abuse from businesses or public entities. They have the following functions:
Advice: they give advice to consumers about handling complaints
Regulation: they ensure that organisations comply with specific regulations
Promotion: they promote and enforce consumer rights
Investigation: they investigate reports of breaches of regulations
Lobbying: they press the government for changes to the law to protect consumers further
Representation; they represent consumer interests in committees, in consumed groups, or in court
Identification: they identify trading practices that are against consumer interests
Education: they educate consumers and disseminate information about consumer rights and responsibilities
Protection: they protect consumers against abusive and unscrupulous business practices
Research: they do independent comparative surveys and tests on different companies' products and services
to give consumers useful information.
National and provincial government bodies including the SABS
Government consumer organisations
The Department of Trade and Industry (the dti) is the government
department responsible for creating a competitive, enabling
economic environment in South Africa by implementing fair,
transparent, effective and predictable business regulations. This
department relies on a group of specialised regulatory institutions,
such as the National Consumer Commission, the National Credit
Regulator, the National Consumer Tribunal and the South African
Bureau of Standards to fulfil its functions.
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,The National Consumer Commission (NCC) www.thencc.gov.za
On 1 April 2011, the National Consumer Commission (NCC) became operational. The Commission is a
government entity established in terms of the Consumer Protection Act 68 of 2008. The NCC's mandate is to
protect consumers against unfair business practices through complaint resolution, investigations, prosecutions,
education and voluntary compliance programmes. It does this by:
promoting the spirit of fair trade between consumers and service providers
educating consumers about their rights and responsibilities
resolving complaints quickly and effectively through negotiated settlements
investigating and resolving matters relating to unfair business practices
conducting research into the market to identify systemic issues affecting consumers
referring matters to the Tribunal for adjudication.
Consumers who feel their rights have been violated by a supplier may lodge complaints directly with the
National Consumer Commission.
The National Credit Regulator (NCR) www.ncr.org.za
The National Credit Regulator (NCR) was established as the regulator under the National Credit Act No. 34 of
2005 (The Act) and is responsible for the regulation of the South African credit industry. It is tasked with
carrying out education, research, policy development, registration of industry participants, investigation of
complaints, and ensuring the enforcement of the Act.
The Act requires the Regulator to promote the development of an accessible credit market, particularly to
address the needs of historically disadvantaged persons, low income persons, and remote, isolated or low
density communities.
The NCR is also tasked with the registration of credit providers, credit bureaux and debt counsellors; and with
the enforcement of compliance with the Act.
The National Consumer Tribunal (NCT) www.thenct.org.za
The National Consumer Tribunal was established in terms of the National Credit Act 34 of 2005 (the NCA).
The Tribunal is an independent adjudicative entity, deriving its mandate from the National Credit Act (NCA).
As such, it hears all sides of a case before making a decision. A decision by the Tribunal has the same status as
one made by the High Court of South Africa.
Various parties can bring cases before the Tribunal. These can be the National Credit Regulator, consumers,
credit providers, debt counsellors and credit bureaux.
Provincial Consumer Affairs Offices
Consumer Affairs Departments (also called the offices of the Consumer Protector) have been established in all
nine of South Africa's provinces under the Department of Trade and Industry. These offices are funded by the
provincial government. They have trained staff to advise consumers about their problems and to provide
consumers with protection, education and information.
Each province has consumer protection legislation allowing for the appointment of a consumer protector and
the establishment of a consumer court. The consumer protector investigates unfair business practices in the
provinces and presents cases before the provincial consumer court. The consumer courts are administrative
tribunals with specific powers for judging cases of unfair business practices.
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, You can approach a Consumers Affairs Office to intervene in disputes over contracts, and quality of products or
services. If you are unable to resolve a complaint with a specific service provider, obtain a complaint form from
your nearest Provincial Consumer Affairs office.
The South African Bureau of Standards (SABS) www.sabs.co.za
The SABS is the national standards authority for South Africa. It operates in terms of the Standards Act, 2008
(Act No. 8 of 2008).
Before the 2008 Standards Act, the SABS was responsible for standardisation as well as regulation.
Regulation involved protecting consumers by not allowing products onto the market if they did not meet the
standards.
The 2008 Standards Act split the functions of the SABS. The SABS still develops new South African
National Standards (SANS) and maintains standards that already exist. These standards aim to protect
human health and safety and the environment.
The SABS remains the only recognised national institution responsible for the development, maintenance
and promotion of South African National Standards (SANS) which are the basis for all the other SABS
service offerings such as certification and training.
However, the regulatory functions of the Department of Trade and Industry (the dti) are now carried out by
the National Regulator for Compulsory Specifications (NRCS).
The National Regulator for Compulsory Specifications (NRCS) was established on 1 September 2008 in terms
of the National Regulator for Compulsory Specifications Act (NRCS Act), Act 5 of 2008.
The NRCS is primarily responsible for the administration of three Acts under its jurisdiction, namely the
NRCS Act 5 of 2008, the Trade Metrology Act 77 of 1973 and the National Building Regulations and
Building Standards Act 103 of 1977.
Reporting to the Minister of Trade and Industry, its mandate is to protect the health, safety and environment
while ensuring fair trade. This is achieved through sampling, inspection and testing of products in the
market.
A variety of sanctions are applied where products and services do not meet the minimum safety standards.
These range from stopping the sale of non-conforming products, to seizure, destruction and prosecution of
offenders.
For more information on NRCS visit www.nrcs.org.za.
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